Anouk Agnes Deputy Director General ALFI

Luxembourg fund industry … at a glance : NB: 2123 bn euros of assets under management / ou in assets under management Contreverse sur la question de la préposition . CM préfère « in »

Worldwide investment funds Market share (%) by assets Global net assets

European fund industry Worldwide : Number 2 behind the United States  Long tradition ?

Luxembourg funds: the vehicle of choice for cross-border distribution Luxembourg market share of foreign cross-border funds registered for sale

+ 20% AuM + 23,5% AuM Alternative investments Building upon the UCITS experience and know-how Bespoke structures possible in Luxembourg Tried and tested regimes: SICAR, SIF, RAIF, LP Luxembourg, prime location for multi-geographical and multi-sectoral regulated REIFs + 20% AuM + 23,5% AuM PE funds Loan funds RE funds * Source: Luxembourg Private Equity and Venture Capital Investment Fund Survey, conducted by Deloitte on behalf of ALFI. 2018 Loan Fund Survey carried out by Alfi in conjunction with KPMG, 2018 ALFI Luxembourg Real Estate Investment Funds survey, 2018

Responsible Investments

Responsible Investing Fund categories Responsible Investing ESG methodologies (cross-sectoral) Positive screening: Best-in-class Norms-based Negative screening: Exclusion ESG integration Impact investing Esg (environment) Climate change and Renewable energy funds Environmental and Ecological funds Carbon Funds Sustainable forestry funds Sustainable water funds eSg (social) Microfinance funds Social entrepreneurship Social infrastructure Venture philanhropy esG (governance) Engagement Copyright : ALFI

European RI funds evolution The European responsible investing fund market continued to grow, almost doubling since 2010 to EUR 476 billion of Assets under Management at the end of 2016. AuM in EUR bn Nb of funds 2016 EUR 476 Bn +26.6% 2014 EUR 376 Bn Source: European responsible investing fund market 2016 – ALFI & KPMG Survey

European RI funds evolution – by category RI in AuM Total = EUR 476 billion % Source: European responsible investing fund market 2016 – ALFI & KPMG Survey

European RI funds evolution – by domicile RI in % of AuM Total = EUR 476 billion % Source: European responsible investing fund market 2016 – ALFI & KPMG Survey

% ESG Cross-sectoral RI in % of AuM Total = EUR 423.3 billion Source: European responsible investing fund market 2016 – ALFI & KPMG Survey

% Esg Environment RI in % of AuM Total = EUR 32.7 billion Source: European responsible investing fund market 2016 – ALFI & KPMG Survey

eSg Social RI in % of AuM Total = EUR 13.7 billion %

EU Action Plan

Implementing the Action plan May 2018: proposal for a regulation on the establishment of a framework to facilitate sustainable investment('taxonomy') proposal for a regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU)2016/2341 (‘disclosures’) proposal for a regulation amending the benchmark regulation (‘EU Climate Transition Benchmark and a EU Paris-aligned Benchmark,’) draft delegated regulation as regards the integration of ESG considerations and preferences into the investment advice and portfolio management

Disclosures Financial market participants shall publish information on their policies on the integration of sustainability risks in their investment decision-making process on their websites Financial market participants shall include in their remuneration policies information on how their remuneration policies are consistent with the integration of sustainability risks, and publish that information on their websites Where a financial product presents the promotion of environmental or social characteristics, or a combination thereof, provided the companies in which the investments are made follow good governance practices, the information to be disclosed shall include the following: information on how those characteristics are met; if an index has been designated as a reference benchmark, information on whether and how this index is consistent with those characteristics

Implementing the Action plan December 2018: ESMA consultation on integrating sustainability risks and factors in the UCITS Directive and AIFMD and MIFID II (Advice published in May 2019) March 2019: EU Ecolabel: Development of EU Ecolabel criteria for Retail Financial Products Draft criteria proposal for the products scope and ecological criteria EC draft delegated regulation as regards the integration of ESG considerations and preferences into the investment advice and portfolio management

THANK YOU!